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. Last Updated: 07/27/2016

Audit Chamber Glum on Taxes

Having examined federal revenues and expenditures over the first nine months of this year, the State Audit Chamber - a watchdog set up by parliament - has challenged official assertions that Russia is on target to collect more taxes than planned, officials said Thursday.

While the 1999 budget will be "nominally fulfilled," that disguises a situation where the value of taxes collected this year will be equal to between 94 percent and 96 percent of the value of last year's taxes, Khachim Karmokov, the head of the Audit Chamber, said.

"There are no grounds for the euphoria demonstrated by some representatives of our tax authorities. The real situation remains difficult," Karmokov said.

The Audit Chamber boss was especially critical regarding Russia's money supply. At 14.4 percent of Gross Domestic Product, the country's money supply is at best one-third of the amount needed to restore normal monetary circulation in the country, he said.

"In China, the ratio is more than 100 percent, in Poland it is 50 to 60 percent, and in the Group of Seven [leading industrialized nations] it is about 80 percent. The problem is that without money there is nothing to pay taxes with and debts are skyrocketing."